By Phillip CarterSummer Bruin Staff
Eleven million dollars in cost overruns in the building of the
new Anderson Graduate School of Management landed Chancellor
Charles Young in hot water at this month’s University of California
Board of Regents’ meeting.
Several regents questioned Young’s dealings with the
construction company, saying that it may have been unwise to keep
the site open for 246 days when construction was stopped for rain
or earthquake delays.
Young responded to the criticism by explaining that "acts of
God" caused the majority of the excess costs, while the rest was
due to a variety of minor reasons.
"Delays in the construction schedule were primarily due to
100-year rains and the earthquake  that accounts for $6
million of the ($11 million) increase," Young said. "About $2
million was the result of additional requirements laid upon us by
the fire marshal."
During the delays, UCLA campus architect Duke Oakley said the
Anderson site was kept open, and personnel were paid to manage the
site, even though construction was not being done.
"The construction-management firm we had working for us was
rather clever and adroit in doing that (making sure the site stayed
open)," Oakley said. The point of this, he added, was to make sure
that the process wasn’t delayed more by having to start and stop
again each time rain came.
Regent Roy Brophy, citing his experience in construction
projects, said he didn’t approve of UCLA spending millions to be
"clever and adroit," and added that the money could have been saved
or spent in other ways.
"None of the $6 million (in overruns) goes to the building
itself – this is all money going to losses that come from being
adroit," Brophy said.
When questioned about the other $5 million in cost overruns, a
noticeably flustered Young said that a large percentage of the
costs were due to new requirements the fire marshal imposed on the
project, including the need for sprinkler installation in Lot
5.
"We had enormous additional costs created by the fire marshal’s
changes," he said. "They demanded that changes be made from what
they approved when the building started – those changes alone
collectively cost $750,000."
Part of the problem, Oakley explained in tag-team fashion with
Young, was that different inspection teams approved the Anderson
School’s plans, and the actual buildings after completion.
"The site-inspection team feels they have the final say."
After the item was approved, Oakley conceded that he might have
changed his plans if he could forecast the weather better. "We had
bad rain – if I’d known that ahead of time, I would’ve written a
different contract."
Despite the attention paid to the costs’ weather and seismic
causes, Regent Ward Connerly pointed out that nearly $3 million of
Young’s request for more money came because certain donations had
not been received yet, causing UCLA to take out loans to cover the
differences.
Another regent, UC Davis law Professor Daniel Simmons,
concurred, saying that asking the regents for help when donations
stumbled was unacceptable.
"The item that’s being approved here calls for another $8.5
million in borrowing to cover the shortfalls of fundraising – I see
that as a very dangerous cycle to get engaged in."
In light of all the donation delays and "acts of God," Lt. Gov.
Gray Davis suggested the regents’ lawyer propose a new contract
policy to the board so that they can account for these additional
costs at the beginning of projects, rather than the end.
Davis’ motion was approved unanimously.
In the end, the extra $11 million was grudgingly given to UCLA,
with several regents remarking that it was difficult to say no to
approving money that’s already been spent. Oakley said that despite
all the fuss, the new Anderson School was well worth the money.
"When you’re all through, it cost $189 a square foot to build it
– for the quality of that building, that’s not expensive," he
said.
Regents challenge Young on Anderson cost overruns